METALS-Copper hits lowest in nearly three weeks on tariff angst

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LONDON, April 1 (Reuters) - Copper prices slipped to their lowest in nearly three weeks on Tuesday, on course for a fifth consecutive session of losses as uncertainty over U.S. tariffs outweighed positive data from top metals consumer China.

Benchmark three-month copper on the London Metal Exchange (LME) dipped 0.3% to $9,685 a metric ton by 1410 GMT after touching its weakest since March 12 at $9,669.50. Weighing on the market was concern about reciprocal tariffs that U.S. President Donald Trump plans to introduce this week.

"There's a lot more recessionary fears around an economic slowdown and other cyclical assets are taking a beating, so I think that's also holding copper back," said WisdomTree commodity strategist Nitesh Shah. Data on Tuesday showed factories around the world registered reduced activity in March as businesses braced for new U.S. tariffs, though China was an outlier.

Copper had bounced earlier after two separate surveys on Monday and Tuesday showed China's manufacturing sector was expanding more than expected. The private sector Caixin/S&P Global manufacturing PMI on Tuesday showed activity in the world's second-largest economy picked up as factories rushed to get goods to customers before U.S. tariffs took effect. A day earlier, an official PMI showed manufacturing activity growing at its quickest for a year.

"I do think that China will continue to try to lean against the wind and provide stimulus for its domestic economy to propel domestic growth to counteract the loss of potential exports," Shah said.

Buying of U.S. Comex copper has eased since being bid up ahead of expected U.S. tariffs. The most active May futures dropped 0.3% to $5.02 per lb, dampening the premium over LME copper to $1,385 a ton from a record $1,578 last week. LME tin, meanwhile, climbed 1.2% to $37,100 a ton after hitting its strongest since June 2022 at $37,420 on fears of supply disruption from an earthquake in tin-rich Myanmar last Friday.

Among other metals, LME aluminium dropped 0.9% to $2,511.50 a ton, zinc lost 1.3% to $2,816.50, lead retreated 1.2% to $1,987 and nickel rose 0.4% to $15,985.

Zinc and lead hit their lowest in about four weeks.

text_section_type="notes"> For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES (Reporting by Eric Onstad Additional reporting by Violet Li in Shanghai Editing by Janane Venkatraman and David Goodman)

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